Dubai, Emaar say in talks to merge developers

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Dubai Holding, owned by the ruler of the Gulf emirate, and leading developer Emaar Properties EMAR.DU said on Friday they are in advanced talks to merge four local real-estate companies.

A joint statement said the move would consolidate Emaar, which is building the world's tallest tower in Dubai, with three developers owned by Dubai's ruler -- Dubai Properties, Sama Dubai, and leisure developer Tatweer -- that are all prominent players in a sector badly hit by the global financial crisis.

Emaar's shares closed at 3.21 dirhams ($0.87) on Thursday, well off their 28.75 dirham high, reached in September 2005. Reuters data showed Emaar's enterprise value was 23.9 billion dirhams, and that it had net debt of 3.8 billion dirhams.